Post Session: Quick Review

Indian markets despite coming off the highs of the day, snapped a seven days losing streak on Tuesday with benchmarks posting gains of around half a percent. Earlier the start of the trade was on a somber note and traders seemed eyeing the Delhi assembly election results. But with the progress of the trade the markets started recovering and strengthening, taking cues from Central Statistics Office (CSO) advanced Gross Domestic Product (GDP) estimates, which said that the Indian economy is poised to grow by 7.4 percent in the current year, bettering 6.9% recorded last year.  Traders seems to have factored in the AAP win factor and concentrated on government’s growth agenda with Finance Minister Arun Jaitley stressing that the government will make efforts to keep fiscal deficit within the targeted limit even as investments remain a challenge.

The Indian markets bucked the global trends, and when the US markets had closed lower and Asian markets ended mostly in red amid worries about Greece, and with data showing that China's consumer inflation slipped to a five-year low in January. The risk of deflation is rising as the world’s second-largest economy faces headwinds from a property market downturn and widespread factory overcapacity, and the situation may have worsened by falling global commodity prices. Though, the European markets were trading with modest gains in early deals.

Back home, although the markets bounced back, but the trade was full of volatility for the day and at one point of time markets entered into red, giving up all their intraday gains, however the slump followed an instant recovery and markets moved higher once again in final hours to post gains of about half a percent. There was a short covering rally in the banking stocks, especially the PSU banks who surged after the Government announced infusion of Rs 6,900 crore in nine public sector banks. This additional capital has been given on the basis of new criteria that comprise of efficiency parameters. Auto stocks too moved higher, after Society of Indian Automobile Manufacturers (SIAM) reported that domestic passenger car sales increased 3.14% to 1,69,300 units in January 2015, while two-wheeler sales in January rose 1.07% to 13,27,957 units. Vehicle sales across categories registered an increase of 1.66% to 16,50,382 units from 16,23,429 units in January 2014. Tata Motors was up by around 4%, M&M was up by over 3%, TVS Motors was up by about half a percent, though there were some disappointments as well, Hero Motocorp, Maruti Suzuki and Bajaj Auto lost about half a percent each. Meanwhile, the result announcements kept directing the stock markets, JK Tyres surged by over 16% after posting better than expected third quarter numbers, ABB surged by over 7% after reporting 44% rise in its net profit, on the other hand Jaypee Infratech was down by about 2% on reporting decline in third quarter net profit.

The BSE Sensex ended at 28355.62, up by 128.23 points or 0.45% after trading in a range of 28044.49 and 28633.72. There were 18 stocks on gaining side against 12 stocks declini on the index.(Provisional)

The broader indices showed a mixed trend; the BSE Mid cap index was up by 0.38%, while Small cap index ended lower by 0.11%.(Provisional)

The gaining sectoral indices on the BSE were Bankex up by 1.76%, Auto up by 1.75%, Metal up by 1.68%, Consumer Durables up by 1.46%, INFRA up by 1.28% while, Oil & Gas down by 0.94%, IT down by 0.74%, TECK down by 0.65% were the losing indices on BSE.(Provisional)

The top gainers on the Sensex were Tata Motors up by 4.01%, ICICI Bank up by 3.34%, Mahindra & Mahindra up by 3.03%, Tata Steel up by 2.80% and SBI up by 2.65%. On the flip side, TCS down by 2.87%, Sun Pharma Inds. down by 2.33%, HDFC down by 2.05%, Reliance Industries down by 1.63% and Hindustan Unilever down by 1.27% were the top losers.(Provisional)

Meanwhile, the Central Statistics Office (CSO) has released advanced Gross Domestic Product (GDP) estimate, according to which the Indian economy is poised to grow by 7.4 percent in the current year, bettering 6.9% recorded last year. According to the latest revised GDP numbers, based on the new gross value added (GVA) methodology, Indian economy grew at a much faster pace of 6.9 percent in fiscal year 2014, compared with 4.7 per cent using the old method. In the third quarter ending December, the economy grew at 7.5 per cent, lesser than the second quarter growth of 8.2 percent, as growth in agricultural sector contracted by 0.4 percent as against a growth of 3.8 percent, mining and quarrying sector too expanded at a slower rate of 2.9 percent, while the manufacturing too slowed to 4.2 percent as against a growth of 5.9 percent in the same quarter last fiscal.

Real GDP or GDP at constant (2011-12) prices in the year 2014-15 is likely to attain a level of Rs 106.57 lakh crore, as against the First Revised Estimate of GDP for the year 2013-14 of Rs 99.21 lakh crore, released on 30th January 2015. GDP at current prices in 2014-15 is likely to attain a level of Rs 126.54 lakh crore, up 11.5 percent from Rs 113.45 lakh crore in 2013-14.

Sector wise, the estimated growth in manufacturing, mining and quarrying, electricity, gas and water supply, and construction is estimated to be 6.8 percent, 2.3 percent, 9.6 percent and 4.5 percent, respectively during 2014-15 as compared to growth of 5.3 percent, 5.4 percent, 4.8 percent and 2.5 percent, respectively, in 2013-14.

As far as per capita income is concerned, the per capita net national income during 2014-15 is estimated to be Rs 88,538, up 10.1 percent as compared to Rs 80,388 during 2013-14. At constant prices, the per capita income (at 2011-12 prices) during 2014-15 is likely to attain a level of Rs 74,193 as compared to Rs 69,959 in 2013-14.

As per the new estimation method the statistics office has recast the way in which it measures data in line with international norms, which takes market prices into account rather than the factor cost that was being considered previously. The base year was also changed to 2011-12 from 2004-05.

The CNX Nifty closed at 8565.55, up by 39.20 points or 0.46% after trading in a range of 8470.50 and 8646.25. There were 31 stocks advancing against 19 stocks declining on the index.(Provisional)

The top gainers on Nifty were Tata Motors up by 3.95%, ACC up by 3.57%, ICICI Bank up by 3.44%, Tata Steel up by 2.96% and Grasim Industries up by 2.83%. On the flip side, HCL Tech down by 3.06%, TCS down by 2.86%, Sun Pharma Inds down by 2.33%, Tech Mahindra down by 2.05% and HDFC down by 2.03% were the top losers.(Provisional)

The European markets were trading mixed, FTSE 100 was down by 24.41 points or 0.36% to 6,812.74, on the other hand CAC 40 was up by 7.58 points or 0.16% to 4658.66 and DAX 30 was up by 1.30 points or 0.01% to 10664.81.

The Asian indices ended mostly in red on Tuesday, tailing the negative cues from Wall Street amid worries about Greece. China’s annual consumer inflation hit a five-year low in January while factory deflation deepened, underscoring persistent weakness in the economy and heaping more pressures on policymakers to step up their efforts to support growth. The risk of deflation is rising as the world’s second-largest economy faces headwinds from a property market downturn and widespread factory overcapacity, and the situation may have worsened by falling global commodity prices. The consumer price index rose 0.8% in January from December. That was the weakest reading since November 2009, when consumer prices rose 0.6% from a year earlier. Philippines Industrial Production fell to a seasonally adjusted annual rate of 4.2%, from 7.5% in the preceding month. Malaysian Industrial Production rose to a seasonally adjusted annual rate of 7.4%, from 4.7% in the preceding month.